Clevenger Co. planned to produce and sell 30,000 units with a selling price of $10 per unit. Variable costs are expected to be $4 per unit and fixed costs are expected to be $80,000. Clevenger actually produced and sold 37,000 units.Using a contribution margin format:Prepare a fixed budget income statement for the planned level of sales and production.
What will be an ideal response?
| Sales (30,000 units ? $10 each) …………………………… | $300,000 |
| Variable costs (30,000 ? $4 each). ……………………… | 120,000 |
| Contribution margin ……………………………………… | 180,000 |
| Fixed costs ……………………………………………… | 80,000 |
| Operating income ………………………………………… | $100,000 |
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